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I’ve seen people take pay cuts to be happier in other jobs, but that happiness doesn’t always work out long term. Primarily because costs of living keep going up and their former role would have saved them a lot of financial difficulties that they are experiencing due to their new “happier” roles. Essentially their happiness at work is being paid for with unhappiness in their pocketbook. It’s impossible to maintain the same lifestyle so it requires downsizing for it to work.
I just took a 40% paycut to move from consulting to industry.
Our approach has been to live off and do minimum required savings from base salary and bonus is for fun+investments
This turns into a double whammy if your position gets downskilled or there is any sort of restructuring initiative. If you recognize that you could be in this boat I'd prioritize your liquidity and boosting your emergency funds. This way your prepared (at least financially).
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I hope I never get to this point